Centre to infuse Rs 3,054 crore in Allahabad Bank

Kolkata, Nov 8 : State-run Allahabad Bank on Thursday said the Centre is infusing Rs 3,054 crore into it during the current fiscal.

"The bank has been informed by the government about fresh capital infusion of Rs 3054 crore towards contribution of the Central government in the preferential allotment of equity shares (special securities/bonds) of the bank during the financial year 2018-19, as government's investment," it said.

The lender's capital adequacy ratio as per Basel-III stood at 6.88 per cent by end of the first quarter of the current fiscal and the government owned a 71.81 per cent stake in Allahabad Bank at the end of first quarter of FY19.

The bank reported a net loss of Rs 1,944.37 crore for the first quarter this fiscal against a net profit of Rs 28.84 crore during the same period last fiscal.

Its gross NPAs (non performing assets) as a percentage of total loans stood at 15.97 per cent in the June quarter against 15.96 per cent in the previous quarter, while net NPAs were at 7.32 per cent as against 8.04 per cent.

Reserve Bank of India (RBI) had imposed additional restrictions on the Kolkata-headquartered bank under the Prompt Corrective Action (PCA) framework in May this year.

The central bank had asked the lender to restrict expansion of risk-weighted assets (RWA), reduce exposure to high-risk loans and restrict accessing or renewing wholesale deposits.